Revenue increased 4% YoY, in line with our estimates
TAQA reported 1Q25 revenue of AED 14,202mn (4% YoY and 6% QoQ), in line with U-Capital estimates.
Net profit decreased 2% YoY
The net profit for the quarter stood at AED 2,083mn (-2% YoY and +178% QoQ). This reduction in net income is due to the higher operating expenses and lower share of results of associates and joint ventures.
Maintain Hold rating
TAQA reported subdued 1Q25 results with net income declining by 2% YoY. However, we foresee growth in FY25e, driven by TAQA’s market leadership and exclusive rights to key projects in Abu Dhabi. The integration of SWS Holdings further solidifies TAQA’s position as Abu Dhabi’s fully integrated utilities company. Additionally, TAQA, in partnership with Masdar, made significant acquisitions in FY24, and the momentum continues in 1Q25 with the acquisition of renewable projects in Spain. These expansions are expected to generate new revenue streams and ensure stable income flow due to the long-term nature of the contracts. Currently, the target price is under review with a Hold rating for the stock.